Mr. Chris Doornbos reports

E3 LITHIUM EXECUTES CONTRIBUTION AGREEMENT UNDERPINNING UP TO $36.5 MILLION IN FEDERAL SUPPORT TO ACCELERATE CLEARWATER PROJECT

All conditions associated with E3 Lithium Ltd.'s previously announced federal government funding have now been met. E3 Lithium has executed the contribution agreement confirming up to $36,507,091 of non-repayable funding through Natural Resources Canada's (NRCan) Global Partnerships Initiative (GPI) to accelerate the development of the company's Clearwater project.

As previously announced on March 2, 2026, the funding will support 75 per cent of the approximately $48-million project, including E3's project staff, to complete the final phase 3 of the demonstration facility and the Clearwater project feasibility study. The funding is retroactive to April 1, 2026, and the company can claim eligible expenses from the start of the second quarter. This support through the GPI will enable E3 to accelerate the development of its Clearwater project at a critical juncture as the company looks to complete major technical deliverables for Stage 1 of commercial operations.

"Canada is building strong domestic critical minerals value chains, and that means investing at the stages that matter most in getting projects over the line. Through the Global Partnerships Initiative, we are supporting the engineering, demonstration and feasibility work needed for E3 Lithium's Clearwater project to reach final investment decision. This is how we move faster, reduce risk and ensure sustainable, sovereign Canadian lithium can power our economy at home and supply our allies abroad," said Tim Hodgson, Minister of Energy and Natural Resources.

"E3 began ramping up the aspects of this project beginning in April this year, upon conditional approval of the funding," commented Chris Doornbos, chief executive officer and chair of E3 Lithium. "With the execution of the contribution agreement, E3 is now fully executing towards some of the biggest technical milestones we have in front of us, aiming to significantly derisk our Clearwater project ahead of the final investment decision. We appreciate the government of Canada's support in advancing a domestic lithium supply chain and strengthening Canada's position in the global critical minerals market."

The funding provided through the GPI will also support 75 per cent of the costs of the company's current technical team as well as the commitment to hire up to an additional 25 new technical staff and operators.

The two key project-based components supported by the funding include the following.

1. Completion of the demonstration facility phase 3

With the execution of the contribution agreement, E3 has commenced equipment orders required to complete the third and final phase of the demonstration facility. Phase 3 includes operation of the previously commissioned 30-column direct lithium extraction (DLE) and purification/carbonation skids, along with the construction and operation of a commercial-size, single DLE column. Phase 3 of the demonstration facility will enable the operation of E3's DLE process at full commercial scale, further validating process performance, reliability and scalability of the technology. In addition, the company expects to have increased production volumes of battery-grade lithium carbonate, which will enable E3 to continue progressing product qualification with offtake partners and evaluate commercial battery supply chain value opportunities. The successful completion of phase 3 of the demonstration facility is a major derisking milestone for the company and will be a critical component in the evaluation of the Clearwater project by potential strategic and offtake partners, project financers and any potential additional government support.

E3's goals for phase 3 of the demonstration facility include:

• Construction of phase 3, the single commercial column, through the second half of 2026 with continuing operations throughout the year;
• Demonstrating lithium recovery of greater than 85 per cent through the single commercial column, a milestone that supports project economics;
• Production of the lithium chloride at an equivalent rate of up to 100 tonnes of lithium carbonate per year;
• Continual validation of product quality by prequalifying the lithium chloride and/or lithium carbonate to potential customers at an increased scale.

2. Completion of the feasibility study

The GPI funding will support E3's completion of the Clearwater project feasibility study, targeting 12,000 tonnes per year of battery-grade lithium carbonate in Stage 1. The internal and external engineering deliverables will be directly supported through the GPI funding. The engineering scope will include the final designs for reservoir development, the gas-handling system, lithium extraction and purification, and lithium carbonatation. While phase 3 of the demonstration facility aims to support process validation and readiness for project financing, the feasibility study and related engineering represent the company's final major technical milestones prior to detailed engineering and advancement toward a final investment decision (FID).

E3's goals for the feasibility study and related engineering include:

• Completion of front-end engineering design (FEED) of the Clearwater Stage 1;
• Completion of the feasibility study and Class III cost estimate, aiming for Q1 2027;
• Readiness to begin ordering long-lead equipment for the commercial facility.

The company has retained Sedgman, a CIMIC Group Company and globally recognized engineering firm, to lead the FEED (front-end engineering and design) for the Clearwater project. Sedgman's expertise in process plant design and project execution is expected to support advancement of the Clearwater project toward final engineering, cost estimation and FID. Sedgman is currently involved in the engineering and delivery of other advanced lithium processing facilities incorporating DLE technologies, including projects progressing toward commercial-scale implementation.

About E3 Lithium Ltd.

E3 Lithium is a development company with total mineral resources of 21.2 million tonnes of lithium carbonate equivalent (LCE) measured and indicated as well as 300,000 tonnes LCE inferred in Alberta. The Clearwater prefeasibility study outlined a 1.13-million-tonne-LCE proven and probable mineral reserve with a pretax net present value (discounted at 8 per cent) of $5.2-billion (U.S.) with a 29.2-per-cent internal rate of return and an after-tax NPV (discounted at 8 per cent ) of $3.7-billion (U.S.) with a 24.6-per-cent IRR.

Unless otherwise indicated, Chris Doornbos, PGeo, chief executive officer and a qualified person under National Instrument 43-101, has reviewed and approved the technical information contained in this news release.

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